Phreesia : Investor Presentation - March 2024

Investor Presentation

March 2024

Disclaimer

This presentation includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance and may contain projections of our future results of operations or of our financial information or state other forward-looking information. These statements include, but are not limited to, statements regarding: Phreesia's future financial and operational performance, including our revenue and Adjusted EBITDA; our outlook for fiscal year 2025 and our fiscal year 2026 revenue target; our business strategy and operating plans; industry trends and predictions; our estimated total addressable market (including any component thereof) and our anticipated growth and operating leverage. In some cases, you can identify forward-looking statements by the following words: "may," "will," "could," "would," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "project," "potential," "continue," "ongoing," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Although we believe that the expectations reflected in these forward- looking statements are reasonable, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including, without limitation, risks associated with: our ability to effectively manage our growth and meet our growth objectives; our focus on the long-term and our investments in growth; the competitive environment in which we operate; our ability to develop and release new products and services, and develop and release successful enhancements, features and modifications to our existing products and services; changes in market conditions and receptivity to our products and services; our ability to maintain the security and availability of our platform; changes in laws and regulations applicable to our business model; our ability to make accurate predictions about our industry and addressable market; our ability to attract, retain and cross-sell to healthcare services clients; our ability to continue to operate effectively with a primarily remote workforce and attract and retain key talent; our ability to realize the intended benefits of our acquisitions and partnerships; difficulties in integrating our acquisitions and investments; and other general market, political, economic and business conditions (including as a result of the recent high inflationary environment, economic slowdowns, warfare and/or political and economic instability in Ukraine). The forward-looking statements contained in this presentation are also subject to other risks and uncertainties, including those listed or described in our filings with the Securities and Exchange Commission ("SEC"), including in our most recently filed Annual Report on Form 10-K and our other SEC filings. The forward-looking statements in this presentation speak only as of the date on which the statements are made. We undertake no obligation to update, and expressly disclaim the obligation to update, any forward-looking statements made in this presentation to reflect events or circumstances after the date of this presentation or to reflect new information or the occurrence of unanticipated events, except as required by law.

In addition to the Company's GAAP financial information, this presentation includes certain non-GAAP financial measures. The non-GAAP measures have limitations as analytical tools and you should not consider them in isolation or as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. There are a number of limitations related to the use of these non- GAAP financial measures versus their nearest GAAP equivalents. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. We urge you to review the reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measures set forth in the Appendix and in the Company's most recently filed Annual Report on form 10-K and our other filings with the SEC, and not to rely on any single financial measure to evaluate our business.

This presentation also contains estimates and other statistical data made by independent parties and by the Company relating to market size and growth and other data about the Company's industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Neither the Company nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to update such data after the date of this presentation. In addition, projections, assumptions and estimates of the Company's future performance and the future performance of the markets in which the Company operates are necessarily subject to a high degree of uncertainty and risk. By attending or receiving this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the Company's market position and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company's business.

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Our mission

To make care easier every day

3

Activated patients.

Improved outcomes.

Who we are: Leading provider of comprehensive solutions that transform the healthcare experience by activating patients in their care.

What we do: Empower healthcare organizations to maximize efficiency, drive growth and deliver great care with tools that transcend patient intake.

How we do it: Manage every step of the healthcare journey-finding a doctor, scheduling, registration, payments, engagement, call-triaging and more-with our software and payments solutions.

• We define AHSCs as the average number of clients that generate subscription and related services or payment processing revenue each month during the applicable period. In cases where we act as a subcontractor providing white-label services to our partner's clients, we treat the contractual relationship as a single healthcare services client.
  2 Three months ended January 31, 2024
  3 As of January 31, 2024
  4 Measured in terms of patient payment volume. Refer to slide 16 for definition of patient payment volume.

>3,900 Average healthcare services clients ("AHSCs")1,2

>$3.9B

patient payments processed latest twelve months3,4

$356M

total revenue for latest twelve months3

27% total revenue growth latest 12 months3

Facilitated 150M+ patient visits in Fiscal Year 2024

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Attractive industry tailwinds

Staffing	Increasing patient	Accelerated	Changing care	Patient-centered
challenges	responsibility	digitization	models	care

• 1.3M healthcare staff represent $37B in annual spending1
• $4.5T U.S. healthcare spend2
• ~$850B U.S. healthcare waste3
• ~$265B admin- related waste3

• $610B out-of-pocket spend by 20302
• HDHPs represent 54% of health plan market4
• Patient payments are hard to collect and reduce cash flow to providers

•	Consumer demand	•	Providers incentivized	•	Need to directly
	for information with		to measure and		reach patients when
	speed, efficiency and		achieve outcomes		making care
	accuracy	•	Requires high levels		decisions
•	Healthcare
	of documentation,	•	Current engagement
	organizations		and substantive		strategies not as
	jettisoning manual		patient engagement		effective as direct
	and time-consuming				outreach
	administrative tasks

• Bureau of Labor Statistics and Kaiser Family Foundation during 2020

• Centers for Medicare & Medicaid Services, National Health Expenditure Accounts during 2022
  3 JAMA, Waste in the US Health Care System, October 7, 2019 4 National Center For Health Statistics July 2022

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Our value proposition and how we make money

Healthcare Services Orgs

Patients

Life Sciences and Payer Organizations

Value proposition

How we make money

• Simplified operations and enhanced staff efficiency
• Improved cash flow and profitability
• Enhanced clinical quality
• Improved patient experience
• Highly visible subscription fees most commonly charged on a per provider per month (PPPM) basis
• Based on number and type of applications elected

• Improved patient experience
• High patient usage
• Flexible payment options
• Engagement in care
• Reoccurring payment processing fees
• Based on level of patient payment volume processed through our solutions

• Direct digital communications
• Improved brand conversion and adherence
• Health plan member enrollment
• Feedback from patient voice
• Fees from life sciences and payer clients for delivering direct communications to patients and members
• Based on engagements with patients and members

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Used by all types of healthcare provider and life sciences organizations

Providers

Life Sciences and Payer Organizations

Phreesia serves more than 3,900 AHSCs1,2

Health systems	Specialty practices
Hospitals	Federally Qualified
Health Centers
Ambulatory	Primary care
surgery centers	groups

Pharma Manufacturers and Health Plans

More than 90 pharmaceutical brands3

All of the top 10 global pharma companies3

Establishing payer relationships

• We define AHSCs as the average number of clients that generate subscription and related services or payment processing revenue each month during the applicable period. In cases where we act as a subcontractor providing white-label services to our partner's clients, we treat the contractual relationship as a single healthcare services client.
  2 Three months ended January 31, 2024
  3 As of January 31, 2024

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Innovative software to improve efficiency, cash flow and the patient experience

Access to care

Provider directory for patients seeking care

Integrated patient scheduling

Automated

appointment rescheduling

Appointment reminders

Patient text messaging

After-hours care

Smart answering solution

Registration

Mobile and in-office

intake modalities

Registration for virtual visits

Specialty-specific workflows

Consent management

Self-servicepatient-reported outcomes and screenings

Revenue cycle

Point-of-service payments

Insurance verification

Payment plans

Online payments

Card on file and

payment assurance

Network

Education and engagement before,

during and after the visit

Patient insights

Referral management

Doctor finder

Real-time integration

with leading PMs and EHRs

Robust analytics tools

Reliable and	Commitment to
scalable solutions	privacy and security

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Multiple growth opportunities

Land new clients

• Direct sales model
• Focus on all provider settings including hospitals

Grow footprint within

existing clients

• Additional providers within existing clients
• Expand new locations
• Increase usage

Cross-sell new

applications to existing

clients

• Proven ability to continuously innovate
• Appointments and Mobile
• Upsell new applications

Increasing investments to

drive growth

• New product and expanding footprint
• Adj. EBITDA positive from FY19 through FY211
• Accelerated spending in FY22
• FY23 included full-year run rate of FY22 investments2
• Generating operating leverage during FY243

Partnerships and M&A

• Opportunistic approach
• Vital Score in FY19
• Two apps from Geisinger and Merck in Q3 FY21
• QueueDr in Q4 FY21
• Insignia Health in Q4 FY22
• MediFind in Q2 FY24
• Access eForms in Q3 FY24
• ConnectOnCall in Q3 FY24

• Full fiscal year Adj. EBITDA was positive for FY19, FY20 and FY21. For a reconciliation to the nearest GAAP measure, please see slide 22.

• During FY22 we accelerated hiring and overall investments across all areas of the Company to prepare for our anticipated growth in client and use of our solutions. FY23 included a full-year run rate of hiring and investments made during FY22.
  3 As noted by FY24 Adj. EBITDA compared to FY23 Adj. EBITDA per Slide 22. Driven by growth in revenues, as noted by FY24 Revenue compared to FY23 Revenue per Slide 21, as well as moderation of expenses.

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Our current addressable market

Subscription-based revenue

~50K addressable healthcare

services clients1

in United States

~1.4M individual providers2

~1.0M active physicians ~247K nurse practitioners ~139K physician assistants

Consumer-related transaction	Network solutions4
and payment processing fees

	DTC point-of-care
$95B addressable out-of-pocket3	marketing spend
in United States	Other life sciences

$6.3B

$2.3B

$1.9B

TAM of ~$10B

• IQIVIA, Definitive Healthcare and company estimates as of April 2021

• Kaiser Family Foundation, BLS Data, American Association of Nurse Practitioners, National Commission of Certification of Physician Assistants - assumes ~1,022,000 total physicians; ~237,000 NPs of which ~110,000 are out-of-hospital taking appointments and 36,000 in-hospital taking appointments; 106,000 PAs, of which ~42,000 are out-of-hospital taking appointments and 41,000 in-hospital taking appointments (2021 - 2022)
  3 CMS, includes out-of-pocket spending for physician, clinical and other professional services (2022)
  4 Based on estimated budget spend for 1) DTC digital advertising in healthcare outside of the point-of-care setting (JAMA Network, Association Between Drug Characteristics and Manufacturer Spending on Direct-to-Consumer Advertising (February 2023)) and 2) POC marketing (Point of Care Marketing Association and ZS Associates, State of the Point of Care Marketing Industry 2022)

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